Japan Intervenes to Support Yen, Briefly Lifts Rate to 155

Financial outlets describe Japan’s yen-buying as a large but temporary measure that cannot offset the pull of higher US interest rates and costly oil imports. Commentators say the Iran war shock to oil prices and Japan’s still‑low rates are the main forces weakening the yen, not just speculation. Many expect Tokyo to keep threatening and occasionally executing interventions during Golden Week, but doubt this will change the broader trend unless global conditions or BOJ policy shift.

• •Japan’s authorities used roughly US$35 billion in reserves to buy yen and briefly pull the currency back to around 155 per dollar.
• •The wide interest rate gap between the Bank of Japan and the US Federal Reserve continues to encourage investors to sell yen.
• •The Iran war has driven oil prices higher, worsening Japan’s trade balance and adding pressure on the yen.
• •Repeated interventions and verbal warnings are expected to slow, but not reverse, yen weakness over the coming weeks.
• •Traders are preparing for sudden yen moves during Golden Week as Japan keeps markets guessing about the timing of further action.